FxWirePro: More USD/CHF downward traction on cards in major trend after breaching of wedge baseline and bearish DMA crossover

USDCHF rejects at major resistances of 0.9770 and 0.97 levels. Ever since it has dropped at this resistance level you see consistent price drops. Last Friday, you could figure out a bearish candle with big real body signals extreme weakness in this pair. Moreover, 7DMA crosses below 21DMA which is the bearish DMA crossover, the current price slides below DMAs.

To substantiate this bearish stance, both leading oscillators (RSI & stochastic) have consistently been converging to the price slumps.

We call this more dips on cards upon rejection below stiff resistance of 0.9687 & bearish DMA crossover.

USDCHF price behaviour in the major trend move in the rising wedge pattern (monthly chart) but for now, attempting to breach below baseline of the wedge.

Most notably, as and when it hits wedge top line, the price dips along with mammoth volumes are in conformity to the bearish sentiments.

As stated in our previous write up, USDCHF bears ensure persistent range in the major trend.

If it manages to break below strong support decisively at wedge baseline at 0.9566 levels on a closing basis (which seems most likely), then expect more slumps as MACD still signal most likely extension of slumps.

This bearish sentiment is backed by the momentum signalled by leading oscillators on monthly terms as well.

Both RSI and stochastic curves are converging downwards to the prices slumps.

Thereby, we conclude stating USDCHF major trend continues to resume bearish sentiments below rising wedge formation.

Use mid-month futures to short hedge.

Hence, at spot ref: 0.9536 we advocate arresting bearish risks by initiating shorts in futures contracts of mid-month expiries by keeping strict stop loss at around 0.9662 levels.

While the FxWirePro currency strength index for the USD has been neutral by flashing a shy above -71 (bearish), while CHF has also been little bullish by flashing +55.

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http://www.fxwirepro.com/fxwire/currencyindex

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